The annual “Best Small Business Cities in America” ranking of 25 cities is based on a weighted average of data on Biz2Credit’s customers across the country. It looks at the health of small businesses in each metro area, the rate of small-business creation and the economic ecosystem for entrepreneurs, including the cost of doing business, tax climate and local talent pool.
Biz2Credit analyzed more than 55,000 businesses with fewer than 250 employees from across the country. These firms were in operation for more than a year and had less than $10 million in annual revenues.
San Jose shot to the top spot after scoring in the top five in average credit score, average annual revenue and Biz2Credit’s proprietary BizAnalyzer score, which takes into account local economic factors, including the cost of doing business and tax rate. San Jose edged New York by a point in the BizAnalyzer analysis; ranked third in average annual revenue, with $801,064; and its business owners had the highest credit scores, at 644, compared with 626 for New York, which ranked second